Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.) Short-term investments. Accounts receivable Notes payable Percent Change = Short-term investments Accounts receivable Notes payable $ Current Year $ 375,911 99, 129 0 Prior Year $ 235,231 102,691 89,640 Horizontal Analysis - Calculation of Percent Change Numerator: 1 Current Year 375,911 $ 99,129 0 Prior Year 235,231 102,691 89,640 Denominator: Dollar Change Percent Change % % %

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is